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Malaysia has announced a reduction in the official reference price for crude palm oil (CPO) for the month of November, a move that ensures the export duty remains at its highest tier of 10%. The update was detailed in a circular published on the Malaysian Palm Oil Board's official website on Wednesday.
As the world's second-largest exporter of the commodity, Malaysia calculated the reference price for November at RM4,323.78 per metric tonne. This is a decrease from the October reference price, which was set at RM4,452.66 per tonne and also attracted the maximum 10% duty.
The country's export tax framework is structured to begin at 3% for crude palm oil priced within the RM2,250 to RM2,400 per tonne range. However, the policy stipulates that the maximum tax rate of 10% is triggered whenever market prices exceed the RM4,050 per tonne threshold, a condition that remains met despite the monthly price adjustment.
Source: The Edge Malaysia